How to Open a Tanning Salon

Learn all about how to open a tanning salon:

• Why Should You Open a Tanning Salon?
• What are the Costs to Start a Tanning Salon?
• How to Open a Tanning Salon in 9 Steps

Setting up your own tanning salon is a great way to combine your passion with your work and take control of a business you love – helping people look and feel their best every day. It’s a rewarding business to run, but it takes some marketing know-how. You’ll need a tanning salon business plan that will help you build a brand that attracts loyal customers who keep coming back every time they need a top up.

According to the American Academy of Dermatology Association, 35% of adults in the US have used a tanning bed in their lifetime¹. That number increases to 59% amongst college students, so it’s an especially astute business opportunity in the health and beauty sector if you’re situated in an area with plenty of students. 

But it’s not as easy as simply buying a tanning bed and opening up shop. Tanning salons are regulated by health and safety standards and need to be a safe, trustworthy place for your clients to receive treatments.

Not sure where to start? Don’t worry. We are on hand to help guide you through the process of launching your tanning salon and ensuring your business is profitable. 

Why Should You Open a Tanning Salon?

With so many Americans using tanning beds, now is a great time to open a tanning salon in your town. There are lots of different services that tanning salons can offer, so you might choose to specialize in just one, or offer a whole variety.

Tanning beds are one of the most popular forms of tanning, but a spray tan is favored by many people who want to look tanned without exposing their skin to UV rays. You should also consider whether you will accept walk-ins or appointment-only bookings and whether you will offer complementary services like skincare.

Opening a tanning salon is no small feat, but for those with experience in the beauty industry, or in customer-facing roles like receptionists or store assistants, there are plenty of transferable skills that would make running a tanning salon a great career choice for you.

What does it Cost to Start a Tanning Salon?

Once it’s up and running, a tanning salon is a fairly reliable profit-making business that will bring in regular customers – and cash. But before you launch there are a number of high-cost purchases to be aware of.

The space and equipment

Firstly, you will need a space to rent. Tanning units require up to 150 square feet of space each, so you should calculate how much room you will need depending on how many stations you intend to fit. This can help you work out the overall size of the space you’ll need – including a waiting area and reception space – and therefore what the average cost should be where you live.

Depending on the model of tanning bed you buy, it can cost anything from $1,500 to over $4,000. Spray tan machines can cost over $300 and tanning booths around $2,600. 

If you want to offer mobile tanning services you should consider the price of an RV, which is up to $75,000. However, if you look online you might be able to find a kitted-out used tanning truck for less than this, which could also save you on the fitting costs.

The software

If you want to manage your bookings and payments online then you’ll need a business management software that could cost up to $100 per month. It’s an extra expense, but it’s worth it to help your customers arrange and manage their bookings online, leaving you and your staff to run the shop without having to manage the calendars too. 

Fixtures

Chairs, shelves, tables, towels, and other soft furnishings all add to the experience of visiting your tanning salon. Prices will range depending on the quantity, quality, and brands you choose but you could need to budget up to $5,000 to fit out your salon with all the right fixtures.

Business costs

Research the licenses and permits your city or state requires from business owners. These could cost up to $500. Liability and equipment insurance and workers comp can add up to around $3,000 per year, and if you’re hiring staff you will need to calculate a fair hourly wage based on your state’s average salaries.

When working out your numbers, it’s always a safe bet to add on an extra 10-20% to cover unforeseen expenditures, and to help you budget for the best possible salon you can create rather than something that doesn’t fit your vision.

How to Open a Tanning Salon in 9 Steps

As with any business, opening a tanning salon comes with its own intricacies so you’ll need to carry out thorough research into the rules, regulations, and permits required by your specific city or state. But following these nine simple steps will help you along the way as you build your tanning salon brand.

1. Conduct market research

Your tanning salon business plan should begin with market research. Looking into your competitors, where you think you can fit the gaps they aren’t covering, and what you think your potential customers will want that currently isn’t being offered in your area. Speak to people who use tanning salons and ask what they would love to see. Learn what makes them return to a tanning salon and use all the information you gather to help plan your own business model.

2. Create a tanning salon business plan

Every company needs a business plan, and it’s not as daunting as it sounds. You can even find free tanning salon business plan templates online to help you get started. Your business plan should look at your key objectives, the mission of your business, and the steps you will take to achieve these goals.

If you’re new to starting a business, using a template will help keep you on track, and will ensure that you cover all the necessary elements.

3. Become a certified expert

The best way to develop a great reputation is to become a certified expert. It might not be part of your initial business plan, but on a personal level it can be extremely beneficial. Check out your local area’s requirements for beauty and health workers and make sure you have the correct training certificates to prove you’re an expert in your field.

4. Choose your location

Where you choose to launch your tanning salon will depend on your area. If there’s a popular street where people know there are good beauty salons, it would be a good idea to get your name in front of an engaged audience already looking for your service. 

Alternatively, opening in a quieter area where you’re the only business offering tanning services could mean you’re the automatic go-to choice for locals looking for a tan. When you’re starting a tanning salon business plan, include this in your market research section.

5. Apply for business licenses and permits

Every area will require different licenses and permits for businesses opening. For tanning salons, you might also need to meet other requirements and certifications. Carry out thorough research and even speak to others in the industry to make sure you’re applying for all the correct permits. If you get caught out without one, you could face a fine or worse – your business could be closed down.

6. Buy supplies, equipment and software

We’ve already touched on budgeting for all the business equipment and supplies you’ll need to start your tanning salon. Once you know what you can afford, it’s time to start purchasing the tanning booths, chairs, towels, spray tan fluids, and other products and accessories you need to give your customers the best possible service. 

7. Work on a marketing plan

Very few businesses will flourish without marketing. As part of your tanning salon business plan, consider how you want to market your company. Taking out adverts on social media and in local papers can help you reach a large audience in your area. Handing out flyers can help you meet and chat with people face to face, and offering special offers and discounts can attract people to try new businesses, even when they might already be loyal to another tanning salon in the area.

8. Recruit your staff

It’s unlikely you’ll be able to run your tanning salon alone – especially if you want to be open seven days a week and run longer hours to help customers visit around their own work schedules. Hiring workers with prior experience in tanning salons, or in other customer-facing roles will ensure they become a positive and friendly face for your brand. As we’ve already mentioned, you should also make sure they have the relevant certifications if they’re going to be carrying out beauty treatments on customers.

9. Get ready to open

Once your business plan is in place, you’ve budgeted and bought your equipment, rented the perfect space, and received all the relevant permits, you’re ready to open. Remember that your marketing plan should be an ongoing project that evolves to fit the needs of your business – and your new staff should be on board to help with the marketing too.

If you need extra support to grow your business using technology-first methods that help attract new audiences, why not become a Groupon Merchant? Find out more information about how Groupon works for businesses.

Sources:

1. https://www.aad.org/media/stats-indoor-tanning#:~:text=Indoor%20tanning%20use,tanning%20bed%20in%20their%20lifetime.&text=Though%20the%20numbers%20have%20been,still%20engage%20in%20indoor%20tanning